26.07.2022
Recently, the Malta Financial Services Authority (MFSA), the regulator of financial services in Malta, published its Annual Report for 2021, a year that presented further challenges across all economies. Nonetheless, the work of the Authority continued to intensify over the past months to encourage a higher level of governance across the board… and where necessary (and through its expert teams), the Authority provides guidance to its regulated entities with the aim to further strengthen the Maltese system.
Being a company that provides solutions to businesses, today we are analysing the highlights of this report to help businesses in the financial sector not only understand the work of the Authority but also to learn about the financial business world in Malta last year.
- The gross added value generated by Malta’s financial services sector grew by 4.3% equivalent to €1.094 billion.
- During 2021, there were almost 14,000 individuals employed within the financial sector. This means an increase of almost 4% when compared to the previous year and it shows the resilience of the Maltese economy.
- More license applications are received year-on-year and shows the potential growth of this business sector. In fact, 584 new license applications were submitted in 2021 for authorisation, more than double the amount in 2020. However, for some reason or another, 25% of the applications were withdrawn or refused.
- From its end, MFSA continued to strengthen its supervisions across all sectors, work that has undoubtedly intensified in the last months to ensure that all licensed businesses are compliant. Most of the supervisory inspections by the Authority focused on two policies: Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT).
- Work related to Corporate Services Providers (CSPs) was also carried out in 2021. To assess governance structures, MLROs and Compliance Officers were interviewed, and following the launch of the new CSPs regime, 276 applications were processed.
At Fairwinds Management Limited, we provide support to businesses in anything related to accounting, corporate, legal and administration services. These include but are not limited to company formation, company maintenance services, introductions to financial institutions and business advisory to ensure that your business runs smoothly.
For more information, you can get in touch with Ms. Joceline Caruana (Director) M.Acc, MIA, Cert.Tax, CPA on jcaruana@fairwindsmanagement.net.
